An annual report by the Securities and Exchange Commission reveals how digital currency scams, which did not merit a mention two years ago, are among the agency’s top enforcement priorities.
The SEC is focused in particular on so-called Initial Coin Offerings (ICOs), which involve the sale of digital tokens related to blockchain projects. While many such projects are complete or on their way to fruition, many others have failed to deliver on their promises or turned out to be outright scams.
“In the past year, the [enforcement] Division has opened dozens of investigations involving ICOs and digital assets, many of which were ongoing at the close of FY 2018,” the SEC states in a section of the report titled “ICOs and Digital Assets.”
